Discussion of Independent Contractor vs Employee Scenario

A security alarm sales company has 19 employees. There is a 46-year-old sales person named Beth who is paid as an independent contractor. Beth is given set hours by the company that is in an at-will state. Beth injured herself on her way to a sales call when she stopped for lunch. Since she missed her appointment and did not notify the employer, the sale is lost. The company fired her.

· Prepare a brief in which you describe the following issues based on the above scenario.
· Identify the significant employment regulations affecting business.
· Analyze the formation, rights, authority, and termination of agency relationships.
· Explain the significant laws protecting employees from discrimination.

Solution Preview

Let's take this point by point:

? Identify the significant employment regulations affecting business.

First off, I'd like to give you a very helpful link: http://www.dol.gov/elaws/ That site was designed with a number of scenarios that actual employees might bring, and what the relevant laws are that the employee should be aware of. Some of the major employment laws and regulations are minimum wage, and the EEOC statutes in regards to discrimination. Employers also need to be aware of the tax consequences of hiring employees and providing benefits. Lastly, work environment safety is a big concern, and this is regulated by the Occupational Safety and Health Administration, or OSHA.

When it comes to agency relationships, what happens is mostly controlled by the employer. For a longer explanation of agency relationships, check out this link: http://en.wikipedia.org/wiki/Agency_ (law) although basically it's simply talking about an employee as an "agent" of the employer and how that works. What we saw here from your assignment, is the formation of a relationship with giving Beth her set hours and controlling her behavior. Her work activities were controlled by her employer, and when it came time to end the employee-employer relationship either one was able to do so "at-will". "At-will" really means "for any reason". You can see how this creates an advantage for the employer in regards to being able to abuse its employees.

? Explain the ...

Solution Summary

The solution contains in-depth answers to the questions posed by the student.